Reasoned adjudication and natural justice require consideration of all material defence evidence before confirming classification findings.

An adjudication order cannot stand where the authority misreads the SSI registration certificate and fails to consider material defence evidence, including supply orders, invoices, bills and the classification challenge. The order must deal with the full documentary record and give reasons addressing the assessee's defence; omission to do so amounts to non-application of mind and breach of natural justice. The matter was therefore required to be readjudicated after proper consideration of the evidence and defence pleas.

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Issues: Whether the adjudication order could be sustained when material defence pleas and documents were not considered and the matter required remand for fresh adjudication.

Analysis: The order was found to have misread the SSI registration certificate and to have omitted discussion of material evidence, including the supply order dated 4-4-1984, the appellants' invoices and bills, and the challenge to classification. The Department's case depended substantially on the agreement and the statement of the purchaser's Managing Director, but the adjudicating authority had not examined the surrounding documentary evidence or given reasons dealing with the defence. This amounted to non-application of mind and violation of the requirement that an adjudication order be reasoned and passed after considering the material on record.

Conclusion: The impugned order could not be sustained and the matter was required to be readjudicated after giving proper consideration to the defence and observing natural justice.

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